CXMT and Tencent reportedly reach $2.94 billion DRAM supply agreement

Chinese DRAM manufacturer CXMT (ChangXin Memory Technologies) has reportedly secured a long-term supply agreement worth more than RMB 20 billion ($2.94 billion) with Chinese internet company Tencent Holdings. The agreement, cited by Reuters based on information from three sources familiar with the matter, is designed to ensure DRAM chip availability for Tencent's server operations.

This multi-year deal is described as one of the largest procurement commitments in recent years between a domestic Chinese chipmaker and a major internet company. Such agreements are becoming increasingly important as Chinese tech firms seek to bolster their domestic supply chains amid global trade tensions.

Details regarding the exact duration of the contract and the specific DRAM chip specifications remain undisclosed. Sources offer varying timelines, with two suggesting the agreement could last up to three years and a third indicating a potential duration of up to five years. Neither CXMT nor Tencent has officially commented on the report.

The reported agreement comes as CXMT prepares for its planned listing on Shanghai's STAR Market. The development highlights the growing emphasis China places on developing its domestic semiconductor capabilities to reduce reliance on foreign suppliers.